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Q4 and full year 2013

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Q4 Highlights

• 21 per cent increase in product compared to fourth quarter 2012.

• Year-end audited reserves Block 3&4 Oman net to Tethys: – 1P reserves 10.7 million barrels (5.3)

– 2P reserves 15.2 million barrels (14.3)

– 3P reserves 20.0 million barrels (18.7)

• Second appraisal well on the B4EW4 structure flows in excess of 2,000 barrels per day

• Record flow rates from third appraisal well - flows in excess of 3,000 barrels per day

• Record net sales of MSEK 193 (170)

• EBITDA of MSEK 148 (193)

• Net result MSEK 45 (145)

• Earnings per share SEK 1.26 (4.07)

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Sales

• Record Net oil sales

• Increase in underlift position of 14 000

barrels during 2013 compared to

decrease of 76 000 barrels in 2012

• 3 % lower oil price

• 4 % higher SEK in relation to USD

Q4 2013 Q4 2012 2013 2012

Sales (MSEK) 193 170 592 584

Sales growth (%) 36 47 14 461

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Q4 2013 Q1 Q2 Q3 Q4

Sales Oil and gas, MSEK Sales growth %

% MSEK

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Sales – over & underlift

4

• Underlift position per 31 Dec, 13,752 barrels

• Underlift decrease in Q4 of 17,144 barrels

0

50 000

100 000

150 000

200 000

250 000

300 000

Q4 2013 Q1 Q2 Q3 Q4

Bbl

Sold volumes Produced volumes after government take

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Oil price development

Q4 2013 Q4 2012 2013 2012

Average selling oil

price (USD/barrel) 108.47 111.71 106.63 110.35

• Secured oil price in 2014 - put options at strike USD 90 per barrel

• Options amount to 65 000 barrels per month • Feb-Dec average premium USD 1.37 per barrel

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Expenses

• Opex significantly impacted by transfer of

late incoming expences from 2012 and well

work overs

• Opex per barrel USD 13.6 (10.4)

– direct production costs USD 7.5 (7.8)

Q4 2012 and Q1 2013 EBITDA include revenues from associates (Lithuania) and the Mitsui bonus.

Q4 2013 Q4 2012 2013 2012

Operating

expenses (MSEK) 36.8 15.9 151.9 95.5

Administrative

expenses (MSEK) 7.5 10.0 30.7 29.2

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40

50

60

70

Q4 2013 Q1 Q2 Q3 Q4

MSEK

Operating expenses Administrative expenses

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EBITDA

• EBITDA margin grow in line with production excl one off effects

• Q4 2012 include revenues from associates (Lithuania) and Q1 2013 the Mitsui bonus

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EBITDA, MSEK EBITDA-marg %

Q4 2013 Q4 2012 2013 2012

EBITDA (MSEK) 148 177 479 530

EBITDA (%) 77 114 81 91

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Net result after tax

Net result after tax affected by:

• Exploration costs of MSEK 56 (5),

relating to Block 15

• Higher depreciation due to higher

investments

• Higher Opex due to timing effects, work

over wells and B4EW4 test production

• No dividend

Q4 2013 Q4 2012 2013 2012

Net result after

tax (MSEK) 45 145 240 314

0

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40

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80

100

120

140

160

Q4 2013 Q1 Q2 Q3 Q4

MSEK

Net result after tax

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Cash flow

• Increased interest payment

from Q4 2012 due to the bond

loan

Q4 2013 Q4 2012 2013 2012

Cash Flow

(MSEK) 150 150 442 467

0

20

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120

140

160

Q4 2013 Q1 Q2 Q3 Q4

Cash flow from operations before changes in working capital

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Balance Sheet Q4 2013

2013-12-31 2012-12-31

Cash (MSEK) 248 295

Shareholders equity (MSEK) 1,100 860

Long term debts (MSEK) 422 417

Equity per share (SEK) 30.96 24.20

Cash per share (SEK) 6.98 8.30

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Investments

• Majority of investments were made on Blocks 3 & 4

• Focus on appraisal drilling, seismic and water injection programmes

• Lower investments than budget due to deferred infrastructure investments

and delayed third rig

• About MSEK 27 spent on Block 15

11

0

50

100

150

200

250

300

Q4 2013 Q1 Q2 Q3 Q4

MSEK

Investments

Q4 2013 Q4 2012 2013 2012

Investments

(MSEK) 80 280 289 875

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Blocks 3 & 4 JV:s investments

12 months 2012 10 months 2013

Drilling -Exploration/Appraisal

Drilling - Development

Geology and seismic

Facilities/Pipeline

Other capex

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Share price

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# Shares

Total volume Closing price

SEK

www.tethysoil.com

Share price development – 1Y

Shelton Petroleum and PA Resources excluded

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Total production

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Oman production

• Record production in Q4

• Average daily production 5,310

bbl

• Production from: Farha South,

Saiwan East and test production

B4EW4

• The JV’s share of production

currently 52 percent

• January new record production of

6,418 bbl

0

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2 000

3 000

4 000

5 000

6 000

7 000

Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec

Oman - Daily production Tethys' share (bo)

2012 2013

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Oman – Block 3 & 4 update

• Appraisal drilling on B4EW4

confirmed presence of oil and

in long term production test

• Exploration well in B4EW5 wet

and work to increase flow is

undertaken

• Appraisal well B4EW4-6 flows

in excess of 3,000 bopd

• Exploration well ongoing in

nearby area B4EW6

• Modern seismic covers less

than 10% of the block area

.....

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Wells in Oman

• 35 wells completed in 2013

• Appraisal wells in B4EW4 area

• Water injection and production wells on Farha South

8

1 2

4

4 5

5 1

1 2

1

1

1 4

1

2

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4

6

8

10

12

Q4-2012 Q1-2013 Q2-2013 Q3-2013 Q4-2013

Appraisal wells

Water source wells

Exploration wells

Water injection wells

Wells in previouslyundrilled fault block

Production wells4

22

37 35

0

5

10

15

20

25

30

35

40

2010 2011 2012 2013

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Appraisal and exploration wells 2013

B4EW4

Well Date Type of well Target reservoir Result

B4EW4 February Exploration Multiple Oil

B4EW4-2 June Appraisal Middle Buah No flows

B4EW4-3 June Appraisal Lower Al Bashir Oil

B4EW4-4 July Appraisal Lower Buah Oil

B4EW4-5 November Appraisal Lower Buah Oil

B4EW4-6 December Appraisal Lower Buah Oil

B4EW5

Well Date Type of well Target reservoir Result

B4EW5 Sept Exploration Multiple Oil

B4EW6

Well Date Type of well Target reservoir Result

B4EW6 On-going Exploration Buah On-going

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Development of reserves

Development of reserves, mmbo (Audited by DeGoyler and MacNaughton)

1P 2P 3P

Total Dec 31, 2012 5.3 14.3 18.7

Production 2013 -1.7 -1.7 -1.7

Revisions 5.7 0.1 -1.6

Discoveries 1.5 2.5 4.6

Total 10.8 15.2 20.0

• 1P reserves doubled – increase of 200% since 2012

• 2P – increase of 21%

• 3P – increase of 18%

• Reserve replacement ratio 153%

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Current reserves

Reserves 31 December 2013, mmbo (Audited by DeGoyler and MacNaughton)

1P 2P 3P

Farha South 8.9 11.7 13.5

Saiwan East 0.6 1.2 2.6

B4EW3 0.0 0.2 0.3

B4EW4 1.2 2.2 3.7

Total 10.8 15.2 20.0

• Farha South field reserves are from the Barik reservoir

• Saiwan East field, including the B4EW3 area reserves, are in the

Khufai reservoir

• B4EW4 area reserves are in the Lower Buah reservoir

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B4EW4 Structure Seismic Interpretation

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B4EW4 Structure Seismic Interpretation

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B4EW4 and Buah Prospects/Leads

NOTE: these two in

Farha new 3D • B4EW4 - 3 wells

producing from Lower

Buah. 2P reserves 2.2

million barrels. Appraisal

drilling continues

• B4EW5 – tested oil,

evaluation on-going

• B4EW6 – well in progress B4EW5

B4EW6

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Farha

Farha Old 3D • Producing Barik FB: 16 • New FB drilled 2013: 1 (FS-68 in A

Farha New 3D • Leads South Farha South

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Seismic Activities

850km2 2D completed 100% in 2013

Processing ongoing

600km2 3D completed

Processing ongoing

B4EW4: 470km2 3D completed

Processing completed

Farha old: Reprocessing completed

Farha new: 510km2 3D completed

Processing completed

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Oman - Block 15 update

• Sidetrack to JAS-2 completed in

October

• Disappointing results from

production test for both JAS-1

and Jas-2

• Production test terminated

• Evaluation of other opportunities

on the Block

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Lithuanian production

• Average daily production 114 bbl in Q4

• Declining production - according to plan

• Evaluation of various production enhancing techniques

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Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec

Lithuania - Daily production Tethys' share (bo)

2012 2013

www.tethysoil.com

29

Lithuania - Gargzdai update

• 7 producing fields

• Production declining according

to plan

• A pilot Co2 production

enhancement project carried

out

• 2-3 undrilled conventional

prospects

• Exposure to thick shale

sections prospective for shale

oil/shale gas

• Cores and other data collected in shale section for analysis

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Lithuania – Rietavas update

Conventional exploration and shale exposure. Work programme fully funded by Chevron*

• Soviet era Silale discovery successfully appraised

• Silale-1 and Silale-5 in intermittent production

• Exploration well Rietavas-1 in progress. Cores currently undergoing analysis

• Preparations for a further exploration well in the southern part

• Preparations for a 3D seismic programme

*Chevron has an option to acquire part of Tethys’ interest

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Lithuania – Raseniai update

Exploration for conventional oil in Silurian

Reefs and other carbonates

• Twin of Soviet era stratigraphic well,

Lapgiriai-1 drilled during spring -

presence of oil confirmed.

• 3D seismic study, partly funded by EU

completed. Processing ongoing

suggests both reefs and matrix

fractures present

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Outlook 2014 Oman and Lithuania

• B4EW4 appraisal to continue

• Several Lower Buah prospects to be drilled

• Farah South and South Farah South exploration/apprasial drilling

• Inhouse estimate of 3-20 mmbbl potential in Barik, Lower Buah, Khufai ’near field’ exploration drilling

• ’Far field’ exploration drilling in Masirah Graben and Western part of Blocks 3 and 4

• Farah South water injection prgramme to continue

• Rasinai license seismic processing to be completed

32

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